Mr. Chad Ulansky reports

CANTEX CLOSES FIRST TRANCHE OF PRIVATE PLACEMENT

Further to its news release of Dec. 5, 2023, announcing a private placement, Cantex Mine Development Corp. has closed the first tranche of the offering and has received $1,419,990 by the issuance of 4,666,633 flow-through units and 76,923 non-flow-through units. Flow-through units were issued at 30 cents per flow-through unit and units were issued at 26 cents per unit; each flow-through unit comprises a flow-through share and one-half of a non-flow-through warrant and each unit comprises one non-flow-through share and one-half of a warrant. Each whole warrant entitles the holder to acquire one common share of the company at a price of 39 cents for a term of two years from closing.

Proceeds from the tranche will be used to finance the company's North Rackla project in Yukon and for general working capital. The company is looking forward to closing a coming second tranche of the offering.

The company was charged $98,000 in finders' fees in connection with the tranche, which was settled with the issuance of 376,920 units at a deemed price of 26 cents per unit. The units issued as settlement of the fees comprise 376,920 non-flow-through shares and 188,460 warrants; the warrants are exercisable for a period of two years from issuance and have an exercise price of 39 cents. The company also issued 376,920 finder warrants, which have the same terms and conditions as the warrants issued in the offering. All warrants issued as part of the finders' fee are non-transferable.

The securities issued in the offering, including the finder warrants, are subject to a four-month hold period, expiring on April 8, 2024.

Vernon Frolick, a director of the company, subscribed for 76,923 units for a total subscription price of $20,000. Mr. Frolick acquired the units for investment purposes. The offering and the acceptance of the subscription by Mr. Frolick were approved by unanimous resolution of the board of directors of the company, with Mr. Frolick declaring his interest in the resolution and abstaining from voting. There was no formal valuation of the company done in connection with the offering, nor has there been such a formal valuation in the past 24 months. The company relied upon the exemptions contained in sections 5.5(b) and 5.7(b) of Multilateral Instrument 61-101 to avoid the formal valuation and shareholder approval requirements of MI 61-101. For the purposes of Section 5.5(b), the company does not have any securities listed on any of the stock exchanges set out in Section 5.5(b); and, for the purposes of Section 5.7(b), the exemption was available as the consideration paid for the units subscribed for by Mr. Frolick was less than $2.5-million.

About Cantex Mine Development Corp.

Cantex is focused on its 100-per-cent-owned, 20,000-hectare North Rackla project located 150 kilometres northeast of the town of Mayo in Yukon, Canada, where significant massive sulphide mineralization has been discovered. Over 60,000 metres of drilling have defined high-grade silver-lead-zinc-germanium mineralization over 2.35 kilometres of strike length and over 700 metres depth. The mineralization remains open along strike and to depth. The company is led by Dr. Fipke, the founder of Ekati, Canada's first diamond mine.

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